apple cuts iphone price and revamps ipods - touch screen nano

SAN FRANCISCO (Reuters)-Apple Inc.
The price of the iPhone was sharply lowered on Wednesday, introducing an iPod with a touch screen to browse the internet wirelessly and improve the iTunes Web store.
Apple shares fell 3. 5 percent.
It has been crying since the company said it will make an announcement on this day, rising on the 13 th.
There have been 5% people in the past week.
At a time when the company is facing another attack from its competitors, including Microsoft, the company is trying to maintain its leading position in the digital media business.
It lowers the price of its own wireless music device, Zune.
Apple chief executive Steve Jobs also showed off an iPod nano with a video screen, saying the company is updating all its music players.
In addition, Apple's iTunes online music store will start selling songs over wireless connections, he said.
This means that for the first time, people can download songs directly to the iPod instead of through the computer.
Paul Foster, option strategist at theflyonthewall, the Internet information website, commented on the stock trend after the iPod change was announced.
Com in Chicago said: "Buy expectations, sell reality.
I think investors expect more positive things from Apple.
Apple shares rose about 70% this year, down $5. 00 to $139. 16.
Shares of AT&T, an iPhone service provider that rose about 13% this year, fell 1.
$ 6% to $39.
63 on the New York Stock Exchange.
Apple says the price of an iPhone model with 8 gigabytes of storage is down from $399 to $599 and will stop using models with less memory.
"Apple has been aggressively cutting prices to prevent competition," says Shannon Cross Research . ".
Apple will also update its iTunes online music store to let customers turn songs into ringtones for the iPhone and allow customers to buy songs while they are connected wirelessly. The new touch-
The screen iPod will have many features of Apple's popular iPhone, including touch screen, using Wi-
Fi technology and mini web browser.
"We're at Wi-
We 've made it available, "Jobs said, which could be seen as a dig into Microsoft Zune, which uses Wi-
But did not enjoy the popularity of the iPod.
Microsoft cut the price of Zune to $50 to $199.
"Microsoft looks like it is entering Apple's field in a bigger way, which will lead to a decline in profit margins for Apple products," said Tim Biggam, chief options strategist at online brokerage firm thinkorswim in Chicago. “But the long-
A series of Microsoft's impact on Apple products remains to be seen . "
Apple also said it had reached an agreement with Starbucks.
Let customers buy music from Apple's wireless iTunes music store at a coffee shop in the chain store.